This document discusses branchless banking and inter-bank payment systems in Nepal. It notes that 20% of adult Nepalis do not have bank accounts due to banks being too far away. Branchless banking aims to solve this issue by providing accessible financial services. The document then discusses the importance of branchless banking and provides statistics on its growth in Nepal. It also discusses Nepal's Inter-bank Payment System (NCHL-IPS) and how it facilitates domestic fund transfers between accounts at different banks. Finally, it explains the two main ways banks pay each other: correspondent banking, where banks maintain accounts at other banks; and through a central bank's real-time gross settlement system, where the central bank acts as an intermediary for

1. BRANCHLESS BANKING
&
INTER-BANK
PAYMENTSYSTEM
Puskar Khadka ©
Anjila Chettri
Sarina K.C.
Pemba Syangbo
Rajina Kafle
Kriti Nakarmi

2. ▪ As per the latest WorldBank Global
Findex Database 2017, for 20% of adult
Nepalis, the sole reason for not having a
bank account is because banks are too
far away.
▪ It suggests that those reporting distance
as a barrier will start using financial
services if these services are accessible
and relevant to their lives..
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3. ▪ It required some
tools and
techniques to solve
this issue of Banks.
3

4. Thanks to
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5. Why Branchless Banking?
Opening a
branch in each
village is neither
feasible nor
profitable
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6. Importance
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▪ Mass and Rural reach
▪ Quality service delivery
▪ Customer Easiness
▪ Funds Mobilization

7. “▪ As per the latest data from Nepal Rastra Bank
(mid-January 2019), a total of 1345 branchless
banking centers have been established across
Nepal and have been serving to a total of 1,11,670
customers. Branchless banking units of majority of
Nepali banks provide real-time transaction services
to the customers.
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8. 8

9. ▪ Global IME Bank starts
branchless banking
service in Kalikot district
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▪ Kumari Bank starts branchless
banking service in Solabang,
Rukum district

10. “
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11. Inter-Bank Payment System
▪ Nepal Clearing House Ltd officially launched Interbank
Payment System (NCHL-IPS) with 58 banks and
financial institutions as its participating members.
▪ NCHL-IPS is an interbank payment solution, which
facilitates domestic fund transfer between accounts,
maintained at different banks and financial
Institutions (BFIs).
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13. So how do banks pay
each other?
▪ Banks don’t tend to put banknotes
in vans and dispatch them to other banks.
▪ How does it work digitally?
▪ There are two ways for it.
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14. White
Is the color of milk and fresh
snow, the color produced by
the combination of all the colors
of the visible spectrum.
Correspondent banking
Black
Is the color of coal, ebony, and
of outer space. It is the darkest
color, the result of the absence
of or complete absorption of
light.
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15. Pain point
▪ However, if you were a bank, maintaining accounts at every single
other bank that your customers might want to transfer money to would
be quite a pain, and expensive (they have to have money sitting there
doing nothing, in anticipation of payment instructions, and as we all
know, current accounts pay very low interest).
▪ And risky! What if the other bank went bankrupt? You’d lose your
money
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16. 16
THERE’S
ANOTHER
WAY

17. Want big impact?
Use big image.
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18. Central banks RTGS
▪ This is one of the roles of a central bank, and we call this
system a settlement system – perhaps a Real Time Gross
Settlement (RTGS) system if the -10/+10 adjustments were
made during the day, or a Deferred Net Settlement (DNS)
system if the payments were queued up for a period of time
and then net adjustments were made, perhaps every hour, or
perhaps at the end of every day.

19. One bank to bank them all
CENTRAL BANK
BANK A
BANK B
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20. THAT’S ALL
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REFERENCES
• KHALTI OFFICIAL SITE
• NCHL WEBPAGE
• PPTTEMPLATES